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There’s no place like phone

Consumer usage patterns in the era of peak smartphone

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Global Mobile Consumer Survey 2016: UK Cut

Smartphone penetration is approaching a peak, just nine years after the launch of the first full touchscreen smartphone.

No other personal device has had the same commercial and societal impact as the smartphone, and no other device seems likely to. However, as the base nears a plateau, relentless innovation continues at device and network levels, leading to exciting times.

Key findings

Our sixth annual edition of the UK Mobile Consumer survey analyses the current trends in the mobile industry. Some key findings include:

  • Almost half of 18-24 year olds check their phone in the middle of the night.
  • 27% of smartphones include a fingerprint reader, of which 76% are used.
  • Connected home devices still haven’t taken off, with just 2% of adults owning smart lights and smart appliances.
  • As of mid-2016, almost half of UK adults had access to at least one type of connected entertainment product.
  • 4G adoption has more than doubled in the last year, from 25% to 54%.
  • 31% of smartphone users make no traditional voice calls in a given week. This contrasts with a quarter in 2015, and just 4% in 2012.
  • The majority of survey participants have downloaded 20 or fewer apps.
  • By mid-2016, almost two-thirds of UK adults had access to a tablet, but penetration growth had slowed down.

Find out more

Read the chapter summaries below to find out more.

  • Better living with smartphone

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  • Prints charming

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  • The Internet of Things

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  • The smartphone approaches a perfect peak

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  • Gearing up for gigabit mobile speeds

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  • Call me maybe? Not.

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  • Apps versus browsers

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  • Tablet: From optimal to optional

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Better living with smartphone

In a mere nine years the smartphone has had a massive impact on UK society. Collectively, UK citizens look at their smartphones over a billion times a day. A tenth of smartphone owners instinctively reaching for their phones as soon as they wake up – and not just to turn off their alarm.

The debate over whether smartphones are good for society may never cease; the reality is that most technologies are a double-edged sword. The smartphone is no exception. It can increment productivity – and diminish it. It can be used to communicate more and better, as well as misinform. It can help us share moments from our lives with friends, and occasionally over-share.

Smartphones are here for good, for better and worse.

Prints charming

The rise of the smartphone fingerprint reader has been rapid. In September 2013, few devices had one. By mid-2016, 27% of smartphone owners were aware their phone had a fingerprint reader and 76% of those who were aware of it used it. This year we forecast UK smartphone users will use their fingerprint readers over 100 billion times for a range of authentication-based applications, from unlocking their phones to authorising transactions.

Over the next few years we expect usage of fingerprint readers to increase markedly as they are incorporated in mid-range smartphone models, as well as premium ones. As the base of reader-equipped phones increases, a growing number of apps and websites will likely support fingerprint reader access.

The Internet of Things (IoT): most entertaining

The connected-self category of IoT, which involves fitness bands and smart watches, has enjoyed a doubling in adoption over the past year, but despite this neither device yet boasts penetration into the double figures. Just 9% of UK adults own a fitness band, and only 4% have a smart watch. This is particularly low when compared to smartphone penetration, at 81%.

In the connected home category, the smart thermostat has had the standout performance over the last year: adoption has surged albeit from a mere 2% to a (slightly less mere) 3%. While, ownership of connected home devices has barely changed since last year, the current IoT winner is the category no one talks about, connected entertainment.

The smartphone approaches a perfect peak

Smartphone penetration in the UK leapt from 52% to 81% of the population in the four years to May 2016. Increases in adoption are now slowing to a crawl: smartphone penetration rose by 7% in the year to 2016, and we expect penetration to rise modestly (by 2% to 4%) over the coming 12 months.

The impact of the smartphone is likely to become more pronounced still. Greater connectivity speeds will likely unlock a whole range of new applications, in addition to live streaming as a mainstream activity. Once components such as fingerprint readers become available in the majority of devices, smartphones may become increasingly accepted as a proof of identity. Smartphone penetration may be approaching a peak, but its impact should continue to grow over the coming years.

Gearing up for gigabit mobile speeds

Over half of UK adults now have a 4G connection, and this already offers peak headline speeds of over 300 Mbit/s in limited parts of the UK.

It is worth noting that five years ago, at a time when measured mobile broadband speeds averaged 1.5 Mbit/s in the UK, the need to 'livestream’ an egg and spoon race at a sports day, to meander around major cities capturing digital artefacts, or to consume an endless stream of video clips did not exist.

Could the availability of much faster mobile broadband speeds – as has been the case historically – yet again expose formerly unseen and unmet needs, whims and desires?

Call me maybe? Not.

As of mid-2016, 31% of respondents in our survey claimed not to make any standard voice calls in a given week. This contrasts with a quarter in 2015, and just 4% in 2012. There has been a steady decline in the proportion of smartphone owners making calls on their devices in the prior week.

The majority of 'data exclusives' who no longer make calls are not forgoing communication entirely; rather they are choosing to use a range of alternative tools to communicate, favouring predominantly text messaging, instant messages (IM) and social networks.

Apps versus browsers

Apps are one of the most disruptive innovations of the last decade and have been pivotal to the commercial success of the smartphone. Millions of apps are now available to smartphone consumers, with over a million just for games. It would therefore appear logical for all companies to want to create an app. Furthermore, for companies reliant on advertising revenues, apps, unlike browsers, are impervious to ad-blockers.

But apps are not always the best approach and should not be considered a default. While for some categories – most obviously games – the app is almost always the right way to go, there are many instances in which a browser is preferred. In a few cases obliging users to download an app might repel potential customers.

Tablet: From optimal to optional

The tablet is one of the most successful consumer products ever. It is one of the fastest-adopted and is now in the vast majority of UK homes. It is likely to remain more ubiquitous than most other recent digital devices, including smart watches, eReaders and fitness bands. It is a popular device for many applications, even if it is not the most preferred.

However, it is unlikely ever to fundamentally displace the laptop or any other device. We expect penetration to plateau at between 65% and 70% of UK homes – a lower level than for computers or smartphones.

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